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WAEC Financial Accounting 2005 Question 11

Question 11

Cash Book

A debit balance of N1,000 in a cash account means that

  1. A.cash in hand is N1,000
  2. B.cash has been overspent by N1,000
  3. C.total cash paid out is N1,000
  4. D.total cash received was less by N1,000.
Show the answer and explanation

Answer: A (cash in hand is N1,000)

Explanation

A debit balance on a cash account is cash in hand.